How do credit cards work?

Question

I still don’t understand them I never had one and never been taught about credit and credit cards but I need and want to build it! So can you explain and describe everything I need to know and what everything means like this for an example was a recommendation from creditkarma.

Answer

So when you have a credit card, you're given a spend limit and this isn't your own money, it's actually the banks money. It's like loaning the money.
The banks charge you interest to use this, and then they might add some other fees to it (maybe like a protection fee (in the event you lose your job, this fee will cover what you have outstanding) or other fees).
So if you swipe $300, then you owe the bank that money plus interest. You can pay it off immediately if you have the funds, or you can pay it off, and there is a minimum payment you'd need to pay per month (so for example, you'd pay $30 over 12 months or something).

Answer

We use credit cards for everything but pay it off every month. To avoid getting into credit card debt, don’t  spend money that you don’t have!

Answer

Just a few tips, keep your credit balance low bc the interest will add up quick! And also find a card with not annual fee! Some charge an annual fee which can be pricy(a few you pay once a year to use the card) other than that the poster above is correct

Answer

Everyone has given you good information. I just like to said like they had because it’s very important. Don’t spend money you don’t have.  If you can’t pay it off don’t spend it.  I know people who have and they have soooo much debt that they can’t pay off.  Credit cards can be a bad thing if over used. But they can be a good thing if used will.  
We have one. Only got it because at the time so had no credit and was trying to pay a house. I was 18 living at home and my husband was 19 living with his mom. The only bill he had in his name was a cell phone and car insurance. I only had a cell phone bill. No banks would approve us for a loan. So he got a credit card. We would pay it off every month. Not we don’t really use it. I don’t even know if he reacted it. When the new card come in the mail this year. But I have a debit card that we use. But that not the some thing.

Answer

Maybe an example will help. I have a few credit cards. I only have one that was ever truly maxed, and it’s the largest of them. Essentially, you get a spending limit, which is the amount of money you can put on a card. It is not your money, however. It is a high-interest loan. My highest spending limit is $3,500. We had to max that out once, but it wasn’t accruing interest at first, and it’s minimum payment was $35 at first. That means it would have taken us many years to pay it off even without interest. It’s interest rate when it started accruing was about 25%. We have paid it down to $2,800 so far, but every month it accrues interest, which is calculated by a few factors. Our minimum payment is now $96 a month, and over $60 of that money is interest payments, meaning our balance gets lower by only $30-40 a month if we don’t pay extra. We are still looking at 4 years to pay it off if we don’t pay extra (which we do sometimes). If you want to build credit, I suggest getting a card that has no annual fee, a good introduction APR (interest) rate, and making smaller purchases and then paying them off. Some people also suggest making a medium-sized purchase and paying it off over three months.

How do credit cards work?

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